China cuts fuel prices, hikes natural gas values from 1 June

31 May 2010 11:26[Source: ICIS news]

SHANGHAI (ICIS news)--China will cut gasoline and diesel prices for the first time this year, effective 1 June, in line with recent falls in international crude values, the National Development and Reform Commission (NDRC) said on Monday.

Gasoline prices would be yuan (CNY) 230/tonne ($33.7/tonne) lower at CNY7,190/tonne, while diesel prices would go down by CNY220/tonne to CNY6,460/tonne, according to China's economic planning body.

In April, ?xml:namespace>China implemented in a price hike under the new pricing mechanism that the country adopted in late 2008.

Under the scheme, the Chinese government may adjust fuel prices when crude oil costs change more than 4% over 22 working days.

In a separate announcement, China decided to hike the ex-works natural gas prices by CNY0.23/cubic meter from 1 June given lower domestic natural gas prices and rising demand, NDRC said.

Crude prices fell to as low at $68/tonne this month before recovering back to around mid-$70/bbl levels.